Software maker SAP agreed to pay rival Oracle Corp $306 million in damages over copyright infringement allegations against a SAP unit.

The proposed agreement requires court approval, and would clear the way for Oracle to ask the 9th U.S. Circuit Court of Appeals to restore a $1.3 billion jury award in this case, according to a joint filing with a federal court in Oakland, California on Thursday.

A Northern California jury determined in 2010 that Oracle should be paid $1.3 billion over accusations SAP subsidiary TomorrowNow wrongfully downloaded millions of Oracle files.

However, U.S. District Judge last year discarded the jury verdict and said Oracle could accept a $272 million award, or opt for a new trial against SAP.

The proposed agreement also confirms that Oracle should recover $120 million for legal bills, a sum that has already been paid.